(Bloomberg) -- Bridgewater Associates widened its lead over global peers in China last year, after its multi-asset strategy’s stable returns attracted more wealthy local clients in a volatile market.
The US giant’s Shanghai-based private fund management arm boosted assets under management to more than 55 billion yuan ($7.5 billion) as of Dec. 31 thanks to investment returns and new inflows, according to people familiar, who requested not to be named because the matter is private. That compares with less than 40 billion yuan at the start of 2024, suggesting an increase of around 40% year on year.
The firm’s All Weather Plus onshore fund returned more than 35% for the full year, the people said. That was more than threefold the average return of 11% among local multi-asset funds, according to data compiled by Shenzhen PaiPaiWang Investment & Management Co.
Bridgewater declined to comment via email.
Bridgewater’s diversification across asset classes is helping it buck the trend in China’s 5.2 trillion yuan hedge fund industry, which saw combined assets shrink through November amid tightening regulations and wild swings in the stock market. The local arm even raised performance fees during the year when many Chinese peers faced pressure to cut fees to keep clients.
The diversified approach is also helping the firm, founded by Ray Dalio and led by Chief Executive Officer Nir Bar Dea, in the rest of Asia where client interest remains strong, according to the people. Its Asia ex-China Total Return Strategy has delivered a net return of more than 25% since inception on Oct. 1 2023, they added.
More than 30 global firms have set up wholly-owned hedge fund units in China since rules were eased in 2016. Bridgewater remains the only foreign player that has more than 10 billion yuan in assets, with closest global rivals D. E. Shaw & Co. and Two Sigma Investments LP still managing just more than 5 billion yuan each.
The onshore fund’s performance of more than 35% was solid even by the standards of much smaller local rivals’. The top 10 local multi-asset products — each with less than 800 million yuan — by firms managing more than 100 million yuan generated returns from 38.8% to 76.5%, according to PaiPaiWang data.
Bridgewater still sees opportunities this year for accommodative policy follow-through after top officials pledged to ramp up monetary and fiscal stimulus and stabilize asset markets, the people said.
Elsewhere in the region, the company expects economic conditions to remain supportive to equities, and holds positions in markets that offer more attractive risk premiums like Japan and South Korea, the people said. For interest rates, the firm believes Japan warrants more tightening than priced in, while Thailand is likely to see more easing as exports and inflation remain weak, they added.
©2025 Bloomberg L.P.